When a Partnership Is Insolvent and a Partner Has a Deficit

question 15

Multiple Choice

When a partnership is insolvent and a partner has a deficit capital account balance, that partner is legally required to:

• A) Declare personal bankruptcy.
• B) Initiate legal proceedings against the partnership.
• C) Contribute cash to the partnership.
• D) Deliver a note payable to the partnership with specific payment terms.
• E) None of these answer choices are correct. The partner has no legal responsibility to cover the capital deficit balance.

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Definitions:

Social Movements

Collective efforts by groups of people to achieve a shared objective, often to enact social change or resist social policies.

Vancouver Riot

Refers to the public disturbance that occurred in Vancouver, often associated with the 2011 riots following the Vancouver Canucks' loss in the Stanley Cup Final.

Social Movement

A collective effort by a large group of people to achieve a specific goal, often related to social change.

Frame Alignment

In social movement theory, it is the process of making individual and social movement frames more congruent and mutually supportive to foster mobilization.